ASF SFSF Update: 'Forbearance SPV' key features released

ASF SFSF Update: 'Forbearance SPV' key features released

May 06 2020

The ASF welcomed the announcement by the Federal Treasurer on March 19 that the Australian Office of Financial Management (AOFM) would be provided with an investment capacity of $15 billion to invest in wholesale funding markets, including the securitisation market used by small ADIs and non-ADI lenders.

Over the ensuing weeks, the ASF has worked closely with the AOFM and the securitisation industry on a ‘forbearance SPV’ that will allow for the SFSF to support term and warehouse structures where COVID-19 hardship cases can be shown to be restricting cash flow into securitisation vehicles.

The ASF retained King & Wood Mallesons and the AOFM retained Clayton Utz to negotiate the terms of the forbearance SPV. The structure of the SPV is now close to being finalised by way of a detailed term sheet. The term sheet is not yet available to circulate however the ASF has prepared a summary document setting out the key features of the forbearance SPV structure.

If you are interested in participating please contact Chris Dalton or Robert Gallimore from the ASF (contact details here). Any expressions of interest regarding utilisation of the Forbearance SPV facility should be directed to the AOFM.